Economy
![](https://www.steelmarketupdate.com/wp-content/uploads/sites/2/media/k2/items/src/ed0768217d8331552e0db32e9d2f3010.jpg)
SMU's January At-a-Glance
Written by Brett Linton
February 1, 2020
Both steel and scrap prices increased in the month of January, raising with them optimism levels over market conditions one month into the new year. The average price for hot rolled steel rose by about $30 per ton in January. The benchmark price for hot rolled peaked at $610 per ton in mid-January, but ended the month slightly lower at $590 per ton. Steel Market Update’s Pricing Momentum Indicator continued to point upward through the end of last month, but the price trend was beginning to show signs of potential slowing.
SMU Buyers Sentiment Index readings showed significant improvement over December with Current Sentiment at +62, Future Sentiment at +63.5 and the three-month moving average at +51.33, quite an improvement from the lower readings seen in December and for most of 2019.
Key indicators of steel demand were mixed with the AIA’s Architectural Billings Index rising to 52.5, showing improvement in planned construction, while ISM’s Manufacturing Index declined to 47.2 indicating contraction in manufacturing, according to December data to be updated soon. In the energy sector, the U.S. rig count dipped below 800 in January, showing reduced demand for oil country tubular goods. Auto production slowed to a still-healthy annualized rate of 16.7 million vehicles at the end of 2019.
See the chart below for other key metrics in the month of January:
![](https://www.steelmarketupdate.com/wp-content/uploads/sites/2/2024/04/SMU_BL_headshot-V4-150x150.png)
Brett Linton
Read more from Brett LintonLatest in Economy
Metalformers expect steady conditions in coming months
Metalformers expect economic activity to stabilize over the next three months, according to the recently released July Business Conditions Report from the Precision Metalforming Association (PMA).
![](https://www.steelmarketupdate.com/wp-content/uploads/sites/2/images/Featured_News_Icons/construction.png)
Architecture Billings Index rises from 4-year low in June
The Architecture Billings Index (ABI) ticked up in June following May’s four-year low, according to the American Institute of Architects (AIA) and Deltek. While the index improved this month, it continues to indicate weak business conditions among architecture firms.
![](https://www.steelmarketupdate.com/wp-content/uploads/sites/2/2023/07/FedRes.png)
Beige Book: Uncertainty to continue fueling slower economic growth
Growth in the US economy continues to be constrained. The Federal Reserve’s Beige Book report for July shows more areas reporting flat or declining economic activity than in its previous report at the end of May.
![](https://www.steelmarketupdate.com/wp-content/uploads/sites/2/images/Featured_News_Icons/AISI.png)
AISI, AISC, University of Massachusetts get ~$6.4M EPA grant
The American Iron and Steel Institute (AISI), American Institute of Steel Construction (AISC), and the University of Massachusetts at Amherst have received a grant to enhance emissions reporting for steel construction projects.
![](https://www.steelmarketupdate.com/wp-content/uploads/sites/2/2023/12/empire_state_1-scaled.jpg)
Manufacturing activity in New York state continues to soften
New York state saw a continued decline in manufacturing activity in July, according to the latest Empire State Manufacturing Survey from the Federal Reserve Bank of New York.